When filing your taxes in 2025, one important thing to know is the standard deduction. This is a set amount you can subtract from your income, which helps lower the tax you owe.
The standard deduction is easier than itemizing, where you list things like mortgage interest or medical expenses. The IRS updates it every year to keep up with inflation. In 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples.
You don’t need to provide proof of your expenses with the standard deduction, which makes it simple. But, if you have big expenses like a mortgage or charity donations, itemizing might save you more money. You can’t do both, so you’ll need to choose.
If you’re 65 or older, or blind, you can get extra deductions. For single filers, it’s an extra $1,950. For married couples, it’s $1,550 per person. If both are 65 or older or blind, the extra deduction doubles.
You can’t use the standard deduction if your spouse itemizes, or if you’re a “non-resident alien” or have a short tax year.
In most cases, the standard deduction is the easiest and fastest choice. But if you have many deductible expenses, itemizing could save you more. Use tax software or ask a professional for help to figure out the best option for you.
The goal is to choose what saves you the most on taxes. Knowing how the standard deduction works helps you make smart choices when filing. Brite Financial Services is ready to assist if you should have any questions-don’t be shy and ask for help. They look forward to working with you!